Aurvista Gold Closes Previously Announced C$ 6 Million Financing
MONTREAL, QUEBEC--(Marketwired - Nov. 17, 2016) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA
Aurvista Gold Corporation ("Aurvista" or the "Company") (TSX VENTURE:AVA)(OTC PINK:ARVSF)(FRANKFURT:AV2) has closed, with effective date of November 15, 2016, the previously announced private placement in which Primary Capital Inc., and PowerOne Capital Markets Limited acted as finders (the "Finders"), for gross proceeds of $C 5,999,299. The private placement consisted of 39,995,333 units ("Units") at a price of C$ 0.15 per Unit. Each of the Units consisted of 1 common share and 1 fully transferable warrant of the Company. Each warrant entitles the holder to purchase 1 additional common share of the Company at an exercise price of C$ 0.28 per share during the 36 months from the closing date. All the securities are the subject to a four-month hold period from the closing date, expiring on March 16, 2017.
The Company is pleased to announce that Insiders of the Company subscribed to a total of 2,716,666 Units for proceeds of $ 407,500 to the Company.
A finder's fee of C$419,951 was paid to the Finders and the Company also issued an aggregate of 2,799,673 finder's warrants to the Finders, each entitling the holder to purchase one Unit at C$0.15 for a period of 3 years from the closing date. The financing is subject to the final approval of the TSX Venture Exchange.
Jean Lafleur, President and CEO of Aurvista stated "The Aurvista Board and Management welcomes both Primary Capital and PowerOne Capital and their clients as new shareholders of the Company. Their financing also marks a major milestone in our history. We can now start proving up the full bulk gold potential of Douay. Drilling is slated to begin later in the quarter on a series of priority targets which will be summarized shortly. The initial drilling campaign will total 3,000 meters to be completed before year end. This will be followed in Q1-Q2 of 2017 by an additional 20,000 meters of drilling."
About Aurvista Gold Corp.
Aurvista Gold Corporation is a junior gold exploration and development Company with 130,689,121 shares outstanding trading on the TSX Venture Exchange in Canada, the Frankfurt Stock Exchange and OTC Pink Sheets in the US. Aurvista's only asset is the Douay Gold Project, consisting of a 100% owned interest in 250 contiguous claims totaling 133.1 km2, plus a 90% interest in 5 contiguous claims totaling 0.2 km2and a 75% interest (25% held by SOQUEM) in 32 contiguous claims totaling 11.9 km2. In total there are 287 claims covering 145.3 km2 located along a 20 km segment of the Casa Berardi Deformation Zone in the prolific Abitibi Belt of northern Quebec. Douay is located 40 km SW of the Matagami Zinc Base Metal Camp and 150 km N of the Val-d'Or-Malartic Gold Camp, both in Quebec.
In August, 2012, Aurvista updated the Mineral Resources estimates that included all drilling completed to the end of March 2012. Douay contains Mineral Resources estimates of 2.7 million tonnes of Indicated Resources at 2.76 g/t gold for 238,400 ounces (above a 0.3 g/t gold cut-off grade) or 2.5 million tonnes grading 2.98 g/t gold (at a 0.5 g/t gold cut-off grade) for 235,500 ounces. There were additional Inferred Resources of 115 million tonnes at 0.75 g/t gold for 2.75 million ounces (above a 0.3 g/t gold cut-off grade) or 62 million tonnes grading 1.06 g/t gold for 2.1 million ounces (above a 0.5 g/t cut-off grade). Details can be viewed on the Company's website at www.aurvistagold.com.
The technical contents in this news release have approved by Mr. Jean Lafleur, M. Sc., P. Geo., President and CEO for Aurvista Gold Corporation, a Qualified Person under National Instrument 43-101.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
This news release may contain forward-looking statements based on assumptions, uncertainties and management's best estimate of future events. Actual events or results could differ materially from the Company's expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Aurvista Gold Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.aurvistaGold.com.
Mr. Jean Lafleur, P. Geo.